Markets were extremely mixed on Thursday with five of the Mag 7 trading lower, led by weakness in ORC.
In stark contrast, the DJIA surged 646 points to a new record high.
For its part the SPX struck a new record closing high but not a new intraday high.
The Q’s plunged below a rising near-term trend line violating the Wednesday’s 3 Day Chart low taunting the bears that the early weakness could lead to downside momentum
However, once again the break proved to be Miss Direction.
An hourly QQQ shows the opening plunge triggered a Rule of 4 Sell signal.
However, the Q’s went on to recapture the broken trend line and triggered an up ORB for good measure.
A new high today above Wednesday’s high will complete an hourly Megaphone Top
After hours trading was weaker again on the heels of AVGO’s print.
The stock had initially risen over 3% following the release of its earnings, but shares reversed course just after Broadcom CEO Hock Tan said during a post-earnings call that revenue from Broadcom’s non-AI chips will fall sequentially in the current quarter amid weak demand in the segment.
Tan also said he does not expect the company’s contract with OpenAI to begin yielding returns in 2026.
AVGO skidded to close down 25 points after hours.
As if we didn’t get enough misdirection with the FOMC on Wednesday:
RH in a persistent downtrend also reported after the bell.
It gapped lower after-hours skidding 15 points to Undercut 6 month lows before reversing to climb to 170.
LULU also reported, sporting a better chart than RH, it jumped 13 points.
The rotation into beaten down stocks is driving the tape.
As offered above RH and LULU rallying after reporting… and, ultimately, AVGO sinking.
In sum, the SPX closed at a new record high at 6901 (690).
Maybe something, maybe nothing, but 690 is on the Cardinal Cross on the Sq of 9 Wheel—the north, south/east, west axis.
Hence, 6900 squares December 21.
Remember December 21, 2000 is the date of what is called the Great Jupiter/Saturn Conjunction.
Jupiter and Saturn are WD Gann’s Chronocators or time-keepers.
As you recall we showed how running geometric time degrees of 90 degree decrements forward and backward from December 21, 2000 marks many significant turning points.
For example 270 degrees earlier is March 23 and the Covid Crash low.
3 years or 1080 degrees prior to December 21, 2000 was the 2018 Christmas Crash.
Dec 21, 2025 is 5 years or 1800 degrees forward.
There is a lot of time/price synergy with 6920 and this week and 6900 and the week of December 21.
We continue to hear that 2026 will be the year of the 493 versus the Mag 7.
It sounds conveniently like a case of the Emperor’s New Clothes.
It is/was the weighting of the Mag 7 and its ilk, that perpetuated the virtuous performance of the SPX in the last decade. Underperformance by the Mag 7 will be an unvirtuous reversion to the mean.
Underperformance in the Mag 7 in 2026 is going to drive the bear.
